South Korea: Shorter showers, fewer car trips

South Korea has launched a nationwide energy-saving campaign urging citizens to cut back on everyday consumption — including taking shorter showers , cycling short distances and avoiding charging phones or electric vehicles at night.

President Lee Jae Myung framed the effort as a collective national test, invoking past crises when citizens rallied to support the economy. “We desperately need the cooperation from the people,” he said, calling on households to adopt a 12-step conservation plan.

Public agencies are also now required to limit official vehicle use to four days a week, with number plate-based restrictions determining which cars stay off the road. Officials have warned that similar curbs on private vehicles could follow if the crisis worsens.

Sri Lanka: Holidays on Wednesdays 

Sri Lanka has taken a more drastic step, declaring Wednesdays a holiday for public institutions to conserve fuel.

President Anura Kumara Dissanayake said the country must “prepare for the worst” as it braces for possible shortages. The measure effectively cuts commuting and government operations by one day each week.

Philippines: Air-conditioning limit to 24°C

In the Philippines, the government is targeting cooling — one of the largest sources of electricity demand in a tropical climate.

Public offices have been ordered to set air-conditioning units no lower than 24°C under a broader directive to cut energy use by at least 10%. Agencies are also being encouraged to adopt renewable energy where possible.

The measures are part of a wider effort to ensure stable electricity supply as global energy markets remain volatile.

Thailand: Take the stairs

Thailand’s approach combines austerity with behavioural nudges. Government workers have been told to work from home, avoid lifts and take the stairs , while air-conditioning is capped at 26–27°C.

Other steps include suspending overseas trips, reducing photocopier use and shifting meetings online. 

Across Asia, such measures underscore a common reality: the region’s economies remain tightly tied to distant energy routes. As supplies tighten, governments are not only adjusting policy — they are asking citizens to change how they live, one habit at a time.

The warship, carrying about 180 crew members, went down late Tuesday night following the strike. Sri Lankan naval and air force units launched rescue operations after receiving distress calls, recovering 87 bodies and rescuing 32 sailors, while many others were initially reported missing.

It marked the first reported U.S. strike on an enemy vessel in the Indian Ocean since World War II, and has since drawn Sri Lanka into the widening regional conflict even as Colombo insists it will maintain neutrality.

But the war’s economic impact is now emerging in an unexpected sector: tea.

Tea-for-oil 

Sri Lanka’s long-standing tea-for-oil barter agreement with Iran has been suspended amid the conflict, halting a mechanism that allowed Colombo to repay oil debts through tea exports.

This deal was created in 2021 as a workaround to repay $251 million owed for Iranian oil imports, which Sri Lanka could not settle through normal banking channels due to sanctions.

Instead of cash payments, Sri Lanka exports Ceylon tea to Iran, with the value of the shipments deducted from the debt.

Under the arrangement, Iran purchases about 11 million kilograms of Sri Lankan tea annually.

According to the National Tea Planters Association, exporters are now unable to fulfil orders because of logistical disruptions, war-risk insurance costs and shipping uncertainty across Middle Eastern trade routes.

Sri Lanka’s Tea Exporters Association estimates the resulting revenue loss at about $10 to $15 million per week .

The group has also asked the government to intervene to secure about $50 million in payments still owed for tea shipments already delivered to Iran under the barter deal.

Why tea is a crucial industry in Sri Lanka

The disruption is significant for an industry that underpins Sri Lanka’s export economy.

Introduced in 1867, Ceylon tea remains the country’s largest agricultural export, generating about $1.45 billion in export earnings in 2022 .

This sector provides direct and indirect employment to nearly one million people , including more than 300,000 plantation workers.

Tea plantations cover about 203,000 hectares, roughly 4% of Sri Lanka’s land area, producing around 340 million kilograms of tea each year.

Middle East is an important tea market

The Middle East is one of the tea industry’s most important markets.

Industry estimates show about 52% of Sri Lanka’s tea exports are shipped to the Middle East and North Africa, making the sector particularly vulnerable to disruptions linked to the Iran conflict.

Exporters say they still hold orders for shipments but are unable to move cargo because of security concerns and logistical barriers linked to the war.

For Sri Lanka — an island positioned along the shipping routes connecting the Middle East, Europe and Asia — the conflict is no longer a distant geopolitical crisis. Now, its most famous export is feeling the pinch, too. 

Today, just two countries, Vietnam and Sri Lanka, control more than half of the world’s cinnamon exports by value. New trade data shows how these nations have turned an ancient spice into a modern export powerhouse, reshaping supply chains and global food markets in the process.

According to figures compiled by the International Trade Centre and supported by CIA World Factbook export and commodities data, Vietnam is currently the world’s largest exporter of cinnamon. The country accounts for 27.6% of global exports, valued at approximately $227 million.

Sri Lanka follows closely with a 26.6% share, worth around $218 million. What this really means is that the cinnamon trade is anchored firmly in Asia.

Vietnam’s rise has been rapid and deliberate. Large-scale cultivation , particularly in Yen Bai and Quang Nam provinces, has allowed the country to meet rising global demand at competitive prices. Government support for agricultural exports and efficient processing systems has further strengthened its position.

Sri Lanka’s success is built on a different foundation. As the world’s primary source of Ceylon cinnamon , the country commands higher prices due to its distinctive flavour profile and lower coumarin levels.

International Trade Centre data shows that Sri Lankan cinnamon is especially sought after in Europe and other health-conscious markets. Despite higher production costs, its strong reputation has preserved its global competitiveness.

China ranks third in global cinnamon exports, with 15.3% of the market valued at 125 million US dollars. Indonesia follows with 13.7%, or roughly $112 million.

Both countries benefit from integrated agricultural systems and strong regional trade networks. China ’s exports often feed into processing and re-export chains, while Indonesia’s production remains closely tied to smallholder farmers, particularly in Sumatra.

Countries such as the Netherlands, the United States, Germany, and France are not major cinnamon growers, but they remain significant exporters by value. Their role is largely logistical.

The Netherlands, for example, accounts for 3.3% of global exports, reflecting its position as a key European trade and redistribution hub. International Trade Centre data shows that spices frequently enter Europe through Dutch ports before being re-exported across the region.

Global demand for cinnamon continues to grow, driven by interest in natural foods, wellness products, and plant-based diets. The market is expected to reach about $1.95 billion by 2034.

Other parts of the region are under strain as well, with Malaysia witnessing thousands displaced by repeated floods, while Vietnam and the Philippines have each endured a succession of storms and landslides that have killed hundreds this year.

Scientists say the scale of the destruction is consistent with long-term climate trends. 

The World Meteorological Organization reported that record-high carbon dioxide levels in 2024 accelerated global heating, driving more severe storms this year. Asia is warming nearly twice as fast as the global average, and warmer oceans are feeding storms that now form more quickly and arrive later in the year.

“Storms may not be more frequent, but they are becoming more intense and unpredictable,” said Benjamin Horton of the City University of Hong Kong.

Those shifts are overwhelming governments. The Asian Disaster Preparedness Center notes that countries in the region still emphasize response over prevention, leaving them with shrinking lead time as extreme weather becomes more volatile. Indonesia is vowing to revoke mining permits for companies that broke environmental rules after the deadly floods in Sumatra. In the Philippines, a sweeping probe into anomalous flood-control projects has already triggered congressional resignations and Cabinet reshuffles. Since 2022, nearly 9,900 flood-control works in the Philippines have come under scrutiny after reports that many were “ghost projects,” substandard, overpriced or left unfinished.

In Sri Lanka, unregulated hillside development has contributed to deadly landslides in plantation areas. In Indonesia, satellite data show Aceh, North Sumatra and West Sumatra have lost more than 19,000 square kilometres of forest since 2000 — a level of deforestation that researchers say likely intensified recent floods.

Vietnam estimates more than $3 billion in losses from storms and flooding this year. Thailand reports at least $47 million in agricultural damage since August, with major flooding in the south potentially costing more than $780 million. Indonesia’s finance ministry puts its average annual disaster losses at $1.37 billion.

For countries like Sri Lanka, the burden is especially heavy: it contributes little to global emissions yet is among the most exposed to climate impacts, while still grappling with high foreign debt .

At the COP30 summit in Brazil last month, governments pledged to triple adaptation funding and target $1.3 trillion annually in climate finance by 2035. But developing nations argue the commitments fall far short of what’s needed — and past pledges have often gone unfulfilled.

Climate analysts say Southern Asia is nearing a critical point. The region is expanding renewable energy, but its continued dependence on fossil fuels and resource extraction leaves communities increasingly vulnerable as the floodwaters rise.

Public Security Minister Ananda Wijepala told reporters on June 23 that drug trafficking remained a serious threat to the country.

He said there were around 400,000 drug users in the country, which has a population of 22 million.

“We need to reduce demand while keeping up detections,” he said .

Sri Lanka’s police chief Priyantha Weerasooriya said the drugs seized this year were worth nearly 23 billion rupees, close to the total value of all drugs seized in 2024.

Authorities have arrested over 1,000 suspects for drug-related crimes in recent months.

Among them was a 38-year-old Thai woman caught at Colombo airport on May 30 with nearly 10 kilograms of cocaine, the largest such seizure at a Sri Lankan entry point.

Three other people from Britain, India and Thailand were also arrested in May after trying to smuggle about 60 kilograms of synthetic cannabis.

They are now facing life in prison if found guilty.

The image for this article was AI-generated

But what’s behind these high holiday counts? We take a deeper look at why these countries offer so many public holidays, with insights from  World Population Review and The Times of India.

India – 42 Days

India has the highest number of public holidays in the world — but there’s a catch. As The Times of India explains, the 42 holidays include national, religious, and regional holidays. Since India is a multicultural and multi-religious nation, holidays span across Hindu, Muslim, Christian, Sikh, Buddhist, and regional celebrations. Additionally, each state has its own unique set of holidays, so not all 42 days apply uniformly across the country.

Nepal – 35 Days

Nepal is second with 35 holidays annually. According to  World Population Review , the country observes a vast number of religious and cultural festivals, largely rooted in  Hinduism and Buddhism. Dashain and Tihar (similar to Diwali) are celebrated for multiple days, significantly contributing to the total.

Iran – 26 Days

Iran has many Islamic religious holidays, especially those based on the Shia calendar, like Ashura and Eid al-Ghadir. In addition, Nowruz (Persian New Year) is a multi-day public holiday. The religious lunar calendar and national commemorations both factor into Iran’s high holiday count.

Myanmar – 26 Days

Myanmar’s holidays are deeply tied to the Buddhist lunar calendar, including Thingyan ( Water Festival), which lasts for several days.  Time Out Dubai  notes that festivals such as Waso Full Moon Day and Thadingyut are observed nationally, adding to the total.

Sri Lanka – 25 Days

Sri Lanka's holiday calendar reflects its ethnic and religious diversity. The country recognizes Poya Days (monthly Buddhist full moon days), along with Hindu, Muslim, and Christian holidays. These recurring religious observances are why Sri Lanka maintains one of the highest holiday counts.

A data visualisation from The World in Maps based on data from the Indian Ministry of External Affairs (2024) reveals the top 10 countries where Indian communities have taken root, and the numbers aren’t just impressive; they tell a deeper story of ambition, resilience, and transnational impact.

The Global Top 10: Where Indians call home

The United States : Home to the world's largest Indian diaspora

The U.S. hosts 5.4 million people of Indian origin, a result of liberal immigration policies since the 1960s, the boom in tech-related jobs, and an education system that attracts tens of thousands of Indian students annually. Indian Americans have ascended to key positions in politics (e.g., Vice President Kamala Harris). They also boast the highest median household income of any ethnic group in the U.S.

UAE and the Gulf: Labour powerhouses

With 3.6 million Indians, the UAE ranks second, followed closely by Saudi Arabia and Kuwait. The Gulf region's vast Indian communities are primarily composed of migrant workers, many in construction, logistics, healthcare, and services, who send billions in remittances back to India annually. These ties are not just economic but social, influencing food, language, and festivals across the Gulf.

Malaysia: Colonial legacy meets cultural continuity

Malaysia and Myanmar’s sizable Indian populations are rooted in colonial-era labour migration under British rule. In Malaysia, Indians—especially Tamils—have significantly contributed to education, politics, and entertainment. Despite facing socio-political challenges, Indian Malaysians remain a vocal minority with deep historical roots.

The Commonwealth Connection: Canada and the UK

With 2.9 million and 1.9 million Indians, respectively, Canada and the UK host diasporas that balance tradition and modernity. In both countries, Indian communities are known for their strong civic presence, entrepreneurial prowess, and cultural vibrancy—from Punjabi music topping charts to Indian-origin politicians occupying cabinet posts.

Africa and the Subcontinent: Ties that bind

South Africa (1.7 million) and Sri Lanka (1.6 million) reflect a longer historical connection dating back to indentured labour and early traders. Today, Indian South Africans and Indo-Sri Lankans are integral to their nations’ identities, contributing to commerce, cuisine, and politics—epitomised by figures like Mahatma Gandhi, whose early activism began in Durban.

Population

total: 21,982,608

male: 10,642,043

female: 11,340,565

Ethnic groups

Sinhalese 74.9%

Sri Lankan

Tamil 11.2%

Sri Lankan Moors 9.2%

Indian Tamil 4.2%

other 0.5%

Languages

Sinhala (official) 87%,

Tamil (official) 28.5%,

English 23.8%

Religions

Buddhist (official) 70.2%

Hindu 12.6% Muslim 9.7%

Roman Catholic 6.1%

Christian 1.3%,

Population distribution

The population is primarily concentrated within a broad wet zone in the southwest, urban centres along the eastern coast, and on the Jaffna Peninsula in the north. [1]

Political Context

Government type: Presidential Republic

Capital: Colombo (commercial capital), Sri Jayewardenepura Kotte (legislative capital)

Administrative divisions: 9 provinces; Central, Eastern, North Central, Northern, North Western, Sabaragamuwa, Southern, Uva, Western.

Executive branch

Chief of state: President Anura Kumara Dissanayake (since 23 September 2024) Head of government: President Anura Kumara Dissanayake (since 23 September 2024)

Cabinet: Cabinet appointed by the president in consultation with the prime minister

Elections/appointments: The president is directly elected by preferential majority popular vote for a 5-year term (eligible for a second term); election last held on 21 September 2024 election results:

2024: Anura Kumara Dissanayake elected president (21st of September), percent of vote - Anura Kumara Dissanayake(NPP) 41.1%, Sajith Premadasa(SJB) 32.7%, Ranil Wickremesinghe(IND) 17.3%

2022: Ranil WICKREMESINGHE elected president by Parliament on 20 July 2022; Parliament vote - WICKREMESINGHE (UNP) 134, Dullas ALAHAPPERUMA (SLPP) 82

2019: Gotabaya RAJAPAKSA elected president; percent of vote - Gotabaya RAJAPAKSA (SLPP) 52.2%, Sajith PREMADASA (UNP) 42%, other 5.8% Legislative branch

Description: unicameral Parliament (225 seats; 196 members directly elected in multi-seat district constituencies by proportional representation vote using a preferential method in which voters select 3 candidates in order of preference; remaining 29 seats, referred to as the "national list" are allocated by each party secretary according to the island-wide proportional vote the party obtains; members serve 5-year terms)

Elections: last held on 5 August 2020 (next to be held in August 2025)

Election Results: percent of vote by party/coalition - SLFPA 59.1%, SJB 23.9%, JVP 3.8%, TNA 2.8%, UNP 2.2%, TNPF 0.6%, EPDP 0.5%, other 7.1%; seats by party/coalition - SLFPA 145, SJB 54, TNA 10, JVP 3, other 13; composition- men 213, women 12, percentage women 5.3%

Judicial branch

Highest court: Supreme Court of the Republic (consists of the chief justice and 9 justices); note - the court has exclusive jurisdiction to review legislation Judge selection and term of office: chief justice nominated by the Constitutional Council (CC), a 9-member high-level advisory body, and appointed by the president; other justices nominated by the CC and appointed by the president on the advice of the chief justice; all justices can serve until age 65 Subordinate courts: Court of Appeals; High Courts; Magistrates' Courts; municipal and primary Courts.

Parliamentary registered parties

Sri Lanka People's Freedom Alliance (SLPFA) Samagi Jana Balawegaya (SJB) Supreme Lanka Coalition (ULS)

Tamil National Alliance (TNA) Democratic Tamil National Alliance (DTNA) National People's Power (NPP) Tamil National People's Front (TNPF) Tamil People's National Alliance (TPNA) [2]

Economic Overview

Real GDP (purchasing power parity) $287.132 billion (2023 est.) $293.885 billion (2022 est.) $317.188 billion (2021 est.)

Real GDP growth rate -2.3% (2023 est.) -7.35% (2022 est.) -4.21% (2021 est.)

Agricultural products : rice, coconuts, plantains, tea, sugarcane, milk, cassava, fibre crops, maize. Industries: processing of rubber, tea, coconuts, tobacco and other agricultural commodities; tourism; clothing and textiles; mining Industrial production growth rate: 9.23% (2023 est.) Labor force: 8.707 million.

Unemployment rate: 6.36% (2023 est.) 6.33% (2022 est.) 5.26% (2021 est.) source Economy in Context The growth prospects for the economy depend on effective debt restructuring and ongoing structural reforms.

While fiscal adjustments aimed at increasing revenue may negatively impact disposable incomes and demand in the short term, a modest recovery is expected, though it won't significantly alleviate the welfare losses from the crisis.

Poverty rates are projected to stay above 22% until 2026. Inflation may rise slightly due to new revenue measures and diminishing base effects, although it is expected to remain manageable in the medium term. The current account is projected to stay in surplus, supported by slow import growth and recovering tourism and remittances.

Despite a declining primary deficit, high-interest payments will keep the overall fiscal balance elevated in 2024. Recent economic data shows a 2.3% contraction in 2023, with a rebound in late-year growth driven by tourism, though sectors like construction and manufacturing struggled.

Inflation decreased to single digits in mid-2023 but has begun to rise again due to increased food and utility prices. Labour force participation has fallen, and many households face food insecurity and adopt risky financial coping strategies. Following a period of monetary tightening, the central bank cut policy rates significantly, improving liquidity and lowering government borrowing costs, while private sector credit has been recovering.

For the first time since 1977, the current account posted a surplus, aided by strong remittances and tourism. Challenges remain significant, including the aftermath of a severe economic crisis in 2022 marked by high inflation and currency depreciation, leading to a spike in poverty and food insecurity.

Structural reforms have been implemented, including utility pricing adjustments and new revenue measures, which, while stabilising the economy, have strained household finances. Domestic debt restructuring was completed in September 2023, with ongoing negotiations with external creditors and recent agreements with the IMF signalling progress in reform efforts. [3]

International Political Context

1. Geopolitical Importance Strategic Location:

Sri Lanka is positioned near critical shipping lanes, making it a key player in maritime trade routes connecting Asia, the Middle East, and Europe. Its location is vital for global trade and security, which attracts interest from major powers like India, China, the United States, and Japan.

Indian Ocean Region (IOR): As a nation within the IOR, Sri Lanka is a member of regional organizations like the Indian Ocean Rim Association (IORA). Its proximity to India also makes it a critical player in South Asian regional politics.

2. Relations with Major Powers

India: Historically, India has played a significant role in Sri Lanka’s domestic and foreign policy. The relationship is complex, especially due to India's involvement in the Sri Lankan Civil War (1983-2009) and its concerns about Tamil populations in both countries.

India continues to be a dominant influence in Sri Lanka’s foreign policy, offering developmental assistance, investment, and regional security cooperation. India is also keen to counter China's growing influence in Sri Lanka.

China: Sri Lanka has increasingly aligned itself with China, especially through the Belt and Road Initiative (BRI). China has invested heavily in infrastructure projects, such as the Hambantota Port and the Colombo Port City.

This growing relationship has led to concerns about "debt-trap diplomacy," where Chinese loans burden Sri Lanka’s economy, leading to increased Chinese influence over domestic affairs. The leasing of Hambantota Port to a Chinese company for 99 years has been a symbol of this influence.

United States: The U.S. sees Sri Lanka as a strategic partner in its Indo-Pacific strategy, focusing on maintaining a free and open Indo-Pacific. While military cooperation and economic ties have been developed, Sri Lanka’s growing alignment with China has strained relations with Washington at times. The U.S. also provides aid for governance reforms and human rights improvements.

Japan: Japan has maintained a consistent relationship with Sri Lanka, offering development assistance and loans for infrastructure projects. Japan's engagement is also part of its broader Indo-Pacific strategy, aiming to balance China’s growing influence.

3. Economic Diplomacy

IMF and Financial Aid: Sri Lanka has sought financial assistance from international institutions, including the International Monetary Fund (IMF), to stabilise its economy, especially following the 2022 economic crisis marked by high inflation, fuel shortages, and debt issues. International financial institutions continue to monitor Sri Lanka's economic reforms and fiscal discipline as part of bailout agreements.

Trade and Investment: Sri Lanka’s international economic diplomacy is focused on attracting foreign direct investment (FDI), particularly in sectors like tourism, infrastructure, and manufacturing. Trade agreements with countries like India (Indo-Lanka Free Trade Agreement) and negotiations with others, including China, are crucial for its economic growth.

4. Regional Organisations

SAARC: Sri Lanka is a member of the South Asian Association for Regional Cooperation (SAARC), though the organisation has been somewhat inactive due to tensions between India and Pakistan. Nevertheless, SAARC provides Sri Lanka with a platform for regional engagement.

BIMSTEC: The Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC) is another regional grouping where Sri Lanka plays an active role. It connects South Asia with Southeast Asia and focuses on economic and security cooperation.

In Anuradhapura, authorities conducted surveys as part of the initiative, officials said.

Around 40,000 local officials were deployed on Saturday morning to record wild boar, lorises, peacocks, and monkeys near farms and homes within a five-minute window.

Power Minister Kumara Jayakodi who confirmed the incident in a statement said that key places like the national hospital had power restored within an hour.

However, it took longer to bring electricity back to other areas amidst government caution that water supplies could also be affected.

This blackout comes at a time when Sri Lanka is already struggling with power shortages, local reports say.

On February 10 and 11, the country planned 90-minute power cuts due to a problem at a large coal power plant.

The 900-megawatt Norochcholai plant in the northwestern region broke down, making it harder for the country to generate enough electricity.

Sri Lanka has faced power crises before during its economic collapse in 2022 as a result of inadequate money to import fuel.

At one point, people had to live with 12-hour power cuts, leading to protests that forced then-president Gotabaya Rajapaksa to flee the country and resign.

India later stepped in with a $4 billion loan to help Sri Lanka recover.

Sunday’s outage is the first major blackout since 2022.

Officials from the Ceylon Electricity Board , which runs the country's power supply, apologised for the disruption but did not explain how a single monkey caused such a widespread failure. There was also no update on what happened to the monkey.

The refugees, believed to be fleeing persecution in Myanmar, were escorted to a naval base on Sri Lanka's east coast. Upon arrival, they were provided with medical care, food, and water. Navy spokesman Gayan Wickramasuriya noted that while communication difficulties have prevented immediate confirmation of their identities, it is highly likely that the group is from Myanmar.

This rescue operation mirrors a similar incident in 2022 when the Sri Lankan navy saved 100 Rohingya refugees found in similar circumstances. The Rohingya, a predominantly Muslim ethnic group, have faced severe persecution and violence in Myanmar, leading many to undertake perilous journeys in search of safety.

India has implemented a strict food safety protocol, rejecting imports from various countries due to concerns over quality and safety. The Food Safety and Standards Authority of India (FSSAI) has exposed instances of substandard products, notably mouldy areca nuts from Sri Lanka and heavy metal contamination in Chinese sushi. The FSSAI utilises its Food Import Rejection Alert (FIRA) portal to affirm its dedication to public health by rapidly communicating details of rejected food items, derived from a robust three-tier verification process ensuring compliance with safety standards, reports Ada Derana .

Debt swap terms

The Steering Committee of the Ad Hoc Group representing Sri Lanka's bondholders has shown a favourable disposition towards the country’s debt restructuring terms concerning approximately $12.55 billion in sovereign bonds. The committee incorporates major asset management entities like BlackRock and Morgan Stanley, advocating for a collaborative approach with the Local Consortium of Sri Lanka. According to Ada Derana , since the 2022 default, the Ad Hoc has worked with Sri Lankan authorities to establish restructuring agreements aligned with an IMF-supported programme, which introduces innovative financial instruments like Macro-Linked Bonds and Governance-Linked Bonds.

Adani Group scandal probe

An investigation has been launched by Sri Lanka's government regarding the Adani Group's wind power project worth $442 million amidst bribery allegations against its founder. Under the auspices of President Anura Kumara Dissanayake's administration, the review of this infrastructure project is indicative of a broader initiative to combat corruption and recover misappropriated assets. The Adani Group has refuted the allegations, branding them as unfounded, as reported by My News .

$14.2 billion debt restructuring agreement

In a move to solidify its financial standing, Sri Lanka has ratified a $14.2 billion debt restructuring agreement that was initiated by the previous government, aimed at achieving the debt sustainability necessary for compliance with the IMF. Following a provisional agreement with the IMF for a further tranche of its ongoing bailout, this restructuring will see the exchange of new bonds for existing liabilities. The current administration is keen on continuing these frameworks, anticipating further negotiations with other nations to ensure sustainable debt by year-end, according to Business Standard . Presently, Sri Lanka's external debt totals $37 billion, with substantial portions owed to international creditors.

Entrepreneurship rate low

The National Enterprise Development Authority (NEDA) revealed that only 3 percent of Sri Lanka’s working population is involved in entrepreneurship. NEDA Director Dhanuka Liyanagamage described this figure as “pathetic” compared to regional peers and emphasised the need to promote entrepreneurship more widely. He noted that parents and universities in Sri Lanka rarely encourage entrepreneurship, focusing instead on job opportunities. Despite this, Liyanagamage acknowledged progress since the 2022 crisis in recognising the importance of entrepreneurs for national development. He stressed the need to increase the entrepreneurship rate to at least 10 percent within the next 3-5 years and highlighted bureaucratic red tape as a major obstacle that the new administration must address, as reported by Killer Startups .

Dissolving the legislature, Dissanayake is now hoping for a favourable shift that would enable his government to implement reforms aimed at stabilising the island’s struggling economy.

Dissanayake’s economic vision includes pursuing austerity measures initially introduced by his right-wing predecessor Ranil Wickremesinghe, which has stirred mixed opinions among Sri Lankans. "I think the president's party, the NPP, will emerge victorious," said Imran Furkan, an analyst from Australia-based geopolitical risk firm Tresync. He believes Dissanayake will have the opportunity to implement his reform plans, despite the potential unpopularity of some economic measures.

The upcoming election is seen as critical by various sectors, particularly tourism and business. Anura Lokuhetty, the former president of The Hotels Association of Sri Lanka (THASL), expressed hope for a stable political climate. “As a businessman in the leisure sector… tourism plays a very vital role in Sri Lanka's economy. Therefore, a peaceful environment that is conducive to carrying out any business is what we anticipate from the election,” he told AFP.

The outcome of this election will determine the legislative backing for Dissanayake's economic reform agenda and set the course for Sri Lanka's recovery amidst significant financial challenges.

The Central Bank of Sri Lanka (CBSL) has rejected allegations that it has engaged in the printing of Rs. 100 billion (approximately $341 million). CBSL representatives characterised these claims as "completely baseless," asserting that their open market operations are conventional practices dedicated to bolstering price stability and regulating interest rates. The bank maintained that there has been no issuance of additional currency or inappropriate money issuance aimed at financing the government's budget.

Installation of rooftop solar systems at religious sites across Sri Lanka

India has embarked on a significant initiative involving a $17 million project to install rooftop solar systems at 5,000 religious sites across Sri Lanka, comprising temples, churches, and mosques. The initiative, governed by the Sri Lanka Sustainable Energy Authority, intends to curtail energy expenses while facilitating a transition to renewable energy sources within the country. This project is projected to yield roughly 37 million units of energy annually and includes a five-year maintenance programme to guarantee sustainability. The anticipated completion of this project is slated for early next year and is in alignment with India's "Neighbourhood First" policy, which underscores collaborative efforts with Sri Lanka. Additional renewable energy initiatives are in the pipeline, including solar electrification of Buddhist temples and developments focusing on hybrid energy.

African swine fever outbreak in Sri Lankan province

African swine fever (ASF) – initially identified in Sri Lanka's Western Province – has now extended its reach to the Uva, Northern, and North Western provinces. Reports indicate that around 20,000 to 25,000 out of 70,000 pigs in the western province have been afflicted. With four farms confirming cases, authorities have instituted control measures that include the culling of infected animals. Nevertheless, the economic ramifications concerning compensation weigh heavily on the response strategy. In light of these developments, the government is poised to issue a Gazette notification that will outline measures to effectively manage the outbreak. Recent investigations have corroborated the presence of ASF in pigs located in the Gampaha District, where unusual mortalities have been noted.

Sri Lanka launches investigation into Indian flight bomb threat

The Criminal Investigation Department (CID) of Sri Lanka has instigated an investigation into a bomb threat directed at an Indian flight, as confirmed by Minister Vijitha Herath. This incident adds to a disconcerting trend, as over 90 flights in India have been impacted by fraudulent bomb threats since mid-October, predominantly disseminated through social media channels. Although rigorous checks of the affected flights have uncovered no actual threats, these bogus alerts have generated considerable disruptions and alarm among passengers. In response, Indian authorities have initiated actions to block social media accounts associated with these hoaxes, while Sri Lanka is reassessing safety protocols.

Drugs worth $3.2 million seized in India was headed to Sri Lanka

India’s Narcotics Control Bureau (NCB) has made a significant seizure of methamphetamine valued at Rs 27 crore (roughly $3.2 million) in Chennai, eastern India which was being trafficked to Sri Lanka. The authorities apprehended two individuals: Vijaykumar, a Sri Lankan national, and Manivannan. During the arrests, 1.9 kg of the narcotic and Rs 15 lakh (over $17,000) in cash were confiscated. Subsequent searches unearthed an additional 900 grams at Manivannan's residence. Both suspects remain under investigation as officials delve deeper into their drug trafficking network.

Beyond the short moments of escapism, some of these days are highly sacred as they are observed for religious reasons.

Some countries have most of these days of relief apart from the default Christmas and Easter holidays across the globe.

Breaking the ice, Nepal has 35 public while Indonesia follows closely with 28 holidays.

Below is a list of 5 countries with the most public holidays:

The evolving geopolitical dynamics in Sri Lanka are significantly influenced by the recent election of Marxist-leaning President Anura Kumara Dissanayake. Emphasis from India's External Affairs Minister S. Jaishankar on the necessity for India and China to cooperate in stabilising the region highlights the strategic importance of Sri Lanka in the Indian Ocean. Enhanced Sino-Lankan ties are anticipated, alongside a noteworthy shift in the nation’s foreign policy after the forthcoming elections, particularly the potential lifting of a ban on Chinese research vessels under pressures from India and the US. According to T he Manila Times , Dissanayake’s election reflects a homegrown "colour revolution," diverging from previous foreign-influenced political changes, and suggests a pivot towards China's development model.

Flooding kills three

Severe flooding in Sri Lanka, attributed to relentless torrential rains, has severely impacted over 134,000 individuals, causing three fatalities and two serious injuries. The districts of Colombo and Gampaha have been significantly affected, with 240 homes reported as damaged and around 7,000 residents forced to evacuate. The Watchers reports that the adverse weather patterns are projected to continue until October 17, significantly disrupting transportation systems with submerged roadways and public transport entanglements. The government has announced a relief package of LKR 50 million (approximately USD 170,000), with military crews actively engaged in rescue missions, as monsoon-related challenges have beset the nation since May.

Pharmaceutical production

In diplomatic developments, the Cuban government is steering its focus towards enhancing pharmaceutical production in Sri Lanka, as articulated by Ambassador Andres Marcelo Gonzalez Garrido during dialogues with Prime Minister Dr. Harini Amarasuriya. As reported by the Daily News , the dialogue encompassed the fortification of their 65-year diplomatic bond, resuming mosquito control initiatives supported by Cuba, and extending scholarships in both medical and sports fields. The Prime Minister has acknowledged Cuba’s assistance amid its economic tribulations, extending an invitation for the Cuban Prime Minister to visit Sri Lanka. This cooperation is pivotal in ensuring that both nations continue their collaborative journey.

T20 victory

In sports, Dunith Wellalage's T20 debut has marked a dazzling performance, leading Sri Lanka to a considerable 73-run triumph against the West Indies during the second T20 International on October 15, 2024. Wellalage's bowling performance, which included figures of 3/9, greatly contributed to the West Indies' downfall, restricting them to a mere 89 runs in pursuit of a 163-run target. Coupled with supportive spins from Maheesh Theekshana and Charith Asalanka, Sri Lanka displayed compelling dominance throughout the match. Batting first, Sri Lanka established an impressive total of 162/5, anchored by Pathum Nissanka's crucial 54 runs. Post-match analyses commended Wellalage's poise and technical prowess, indicating his rising potential in Sri Lankan cricket for forthcoming tournaments, Lanka Sara reports.

Dollar rates

Financially, as of October 16, the Sri Lankan Rupee has displayed stability against the US Dollar within commercial banking institutions. Seylan Bank registered rises in both buying and selling rates, whereas NDB Bank reflected a decline in these rates. Conversely, the Commercial Bank observed decreased rates as well, while Sampath Bank's rates held constant, reports Newswire . The notable currency exchange rates are as follows: Seylan Bank: Buying - Rs. 289.85, Selling - Rs. 297.35; NDB Bank: Buying - Rs. 289.25, Selling - Rs. 297.25; Commercial Bank: Buying - Rs. 287.50, Selling - Rs. 297.25; Sampath Bank: Buying - Rs. 289, Selling - Rs. 298.

Dissanayake, 55, who won the presidential election in a landslide victory, campaigned on promises to reverse unpopular tax hikes, raise public sector wages, and seek a better deal with the IMF. 

However, experts warn that the new leader has little room to manoeuvre. "There are certain red lines that the IMF will not agree to negotiate," says Murtaza Jafferjee, chairman of Colombo-based economic think tank Advocata.

Among these non-negotiable terms are key fiscal targets and the independence of the central bank. "One is on the fiscal side, the primary balance target which is 2.3 percent going into next year. And the second one is that there cannot be any change to the central bank law, which makes the bank independent where its primary mandate is price stability. And the second is that there is no monetary financing," Jafferjee explained.

Sri Lanka’s economic troubles began as a result of an unprecedented financial meltdown two years ago, leaving the country with unsustainable debt and a severe balance of payments crisis. 

The public reaction has been mixed but largely hopeful. Many Sri Lankans see Dissanayake's victory as a chance for much-needed change.

Others, however, remain cautious.

Dissanayake faces the daunting task of steering the country through its economic recovery. He has pledged to continue the deal with the International Monetary Fund (IMF) while mitigating the impact of austerity measures on the poorest citizens.

With none of the candidates obtaining over 50% of the vote, the winner will be determined by preferential votes. Dissanayake led the polls with 39.5%, followed by Premadasa with 34%. Incumbent President Ranil Wickremesinghe, along with other candidates, has been eliminated from the race.

The last direct presidential election in 2019 saw Gotabaya Rajapaksa secure a landslide victory, though his presidency ended abruptly in 2022 amid mass protests and a severe economic crisis. Following Rajapaksa's resignation, Wickremesinghe was appointed president.

Dissanayake, 55, has emerged as a figure for change, drawing support from those affected by austerity measures linked to Sri Lanka’s $2.9 billion International Monetary Fund (IMF) bailout.

If elected, he has pledged to dissolve parliament within 45 days and call for general elections to secure a fresh mandate for his policies.

Speaking after casting his vote, Dissanayake voiced his confidence in a peaceful transition, stating, "I trust the president will make way for the democratically elected successor and retire."

Political analysts say the election results reflect the public's demand for change following the 2022 protests.

"Voters have cast their ballots in line with aspirations for different political practices and institutions," Pradeep Peiris, political scientist at the University of Colombo told Reuters. He noted that Dissanayake "reflects these aspirations, and people have rallied around him."

The upcoming runoff will be crucial in determining the future leadership of Sri Lanka, as the nation continues to face significant economic and social challenges.

President Ranil Wickremesinghe, who has been in office for two years, is facing a tough battle to secure a fresh mandate. His government introduced a series of belt-tightening policies, including tax hikes, as part of a $2.9 billion IMF bailout that helped stabilise the economy and end shortages of essential goods. 

"I've taken this country out of bankruptcy," Wickremesinghe, 75, said after casting his vote earlier in the day. "I will now deliver Sri Lanka a developed economy, social system, and political system."

However, the austerity measures have hit ordinary citizens hard, with many struggling to cope with rising costs of living. Wickremesinghe’s leadership helped restore calm after civil unrest in 2022, which saw protests and the ousting of his predecessor, but economic hardships remain a key issue for voters.

Dissanayaka expressed confidence that President Ranil Wickremesinghe would allow a peaceful transition if defeated, saying, "I trust the president will make way for the democratically elected successor and retire," he told the AFP.

Wickremesinghe, who is seeking a fresh mandate after stabilising Sri Lanka’s economy following a severe crisis in 2022, reaffirmed his commitment to rebuilding the nation after casting his vote.

"I've taken this country out of bankruptcy," said the 75-year-old president. "I will now deliver Sri Lanka a developed economy, social system, and political system."

Several voters lined up at voting centres early Saturday morning to cast their vote.

Businessman Ganeshan Bhaskaran told AFP that he is hopeful that new leadership could stabilise the economy and curb the exodus of educated citizens.

Lawyer Soundarie David Rodrigo noted the critical nature of the election, saying she voted for stability after witnessing the country endure events such as the Easter bombings and the 2022 Aragalaya protests.

Wickremesinghe, who took office following the civil unrest in 2022, is seeking a new mandate to continue his economic reforms, which have helped restore stability after severe shortages of food, fuel, and medicine.

This will be the first time since the 2022 economic crisis that Sri Lankans will be voting. The 2022 event saw widespread protests and the ousting of the previous president.

Meanwhile, Ranil Wickremesinghe, the incumbent president and former six-time prime minister, is also seeking re-election.

Wickremesinghe began his term in 2022 after the resignation of his predecessor Gotabaya Rajapaksa amid economic collapse.

His $2.9 billion IMF bailout programme has positioned him as a figure that seeks to guide Sri Lanka out of its financial problems.